Private Equity at Work: When Wall Street Manages Main Street

Last Occurrence: Wednesday, April 9, 2014 1:00pm - 2:30pm
Labor Education Center, 50 Labor Center Way, Rm. 130/131 Douglass Campus
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Private Equity at Work: When Wall Street Manages Main Street

Wednesday, April 9, 2014

1:00-2:30 p.m.

Labor Education Center, Room 130/131
50 Labor Center Way
Douglass Campus

 

Guest speakers at this FREE event include:

Eileen Appelbaum, Senior economist at the Center for Economic and Policy Research, Washington, D.C. and Visiting Professor in the Management Departmentm University of Leicester, UK

 

 

 

Rosemary Batt, Alice Hanson Cook Professor of Women and Work at the Industrial and Labor Relations School, Cornell University

 

 

 

 

 

Private equity firms have long been at the center of public debates on the impact of the financial sector on Main Street companies. In the 1980s, leveraged buyouts by private equity firms saw high returns and were widely considered the solution to corporate wastefulness and mismanagement. And since 2000, nearly 11,500 companies—representing almost 8 million employees—have been purchased by private equity firms. Are these firms financial innovators that save failing businesses or financial predators that bankrupt otherwise healthy companies and destroy jobs?

Economist Eileen Appelbaum and Professor Rosemary Batt present results from the first comprehensive examination of this topic. Their research shows how the law views private equity firms as investors rather than employers, in turn leaving private equity owners unaccountable for their actions in ways that public corporations are. Moreover, their actions are not transparent because private equity owned companies are not regulated by the Securities and Exchange Commission. While acknowledging that private equity firms have had positive effects on the operations and growth of small and mid-sized companies and in turning around failing companies, the speakers document that the interventions of private equity more often than not lead to significant negative consequences for many businesses and workers.

This event is part of the Capitalism and Democracy in Conflict? Governing Work in the Global Economy Lecture Series. It is sponsored by Rutgers School of Management and Labor Relations and Rutgers Center for European Studies. Support provided by Rutgers Centers for Global Advancement and International Affairs.

Contact Information: 

For more information, contact Laura Walkoviak at lawalkoviak@work.rutgers.edu